An investor owns some intermediate-term bonds issued by a company and has become concerned about the risk of a near-term default, although he is not very concerned about a default in the long term. The company’s two-year CDS currently trades at 350 bps, and the four-year CDS is at 600 bps.

Explain why an investor may prefer to use a curve trade as a hedge against the company’s default risk rather than simply buying protection on the reference entity.